Set up CIS for your business

Solution Properties

Solution ID:

222001000100621

Last Modified Date:

Fri Mar 22 12:24:15 UTC 2024

Taxonomy Path:

Case category//How do I...//governmental/legislative compliance

Author:

[email protected]

Set up CIS for your business

Description

Turn on the CIS features in Accounting Start to:

Record your CIS registration details
Add CIS categories to your chart of accounts
Produce CIS transactions and reports

TIP: Once CIS is activated, the options will always be available on your contacts and chart of accounts.

Cause

Resolution

Activate CIS

When you activate CIS for your business, new CIS categories get added to your chart of accounts.

Once CIS contacts are set up, these contacts will automatically apply CIS deductions.

NOTE: You can only be a CIS subcontrator in Accounting Start. You'll need to upgrade if you need to set up as a CIS contractor.

Select More, then Business Settings.
Under Financial Settings, select Construction Industry Scheme (CIS).
Select I'm CIS Registered.
Select I'm a Subcontractor.
Enter your Unique Taxpayer Reference (UTR).
Select your Deduction Rate.
Select Save.

CIS categories

Accounting will create all the required CIS categories for you and add them to your chart of accounts. We'll use the next available nominal code in the range for each section of your chart of accounts. For example, in the sales category, if 4910 is the last code used, we'll use 4911 for CIS Labour and 4912 for CIS Materials.

CIS categories for subcontractors

Code	Category Name	Type	Category Group	VAT Rate	Used on	Description
4911	CIS Labour	Sales	Income	Standard 20%	Sales, Journals, Reports	Records income received from CIS labour on sales invoices.
4912	CIS Materials	Sales	Income	Standard 20%	Sales, Journals, Reports	Records income received from CIS materials on sales invoices.
	The CIS Tax Asset categories					Used to record the expected CIS amount deducted reduce the amount owed on the invoice.
1131	CIS Tax Asset Withheld	Current Assets	Asset	No VAT	Journals, Reports	Records the CIS amount deducted from a sales invoice. The amount that you expect to be withheld from you, so you can get a full picture of your CIS deductions.
1132	CIS Tax Asset Realised	Current Assets	Asset	No VAT	Journals, Reports	When the invoice paid, the CIS amount moves from the Withheld account to the Realised account. The total amount of CIS that’s actually been withheld.

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